Key Highlights:
Hindalco Industries Ltd, one of India’s largest aluminium and copper manufacturing companies, saw a sharp plunge in its stock on Thursday, April 4, as part of a broader market downturn driven by escalating global trade tensions. The metal sector, which is highly sensitive to global demand-supply dynamics and international policy shifts, bore the brunt of the market selloff.
Hindalco Share Price Movement
As of 11:18 am IST, Hindalco’s share was trading at ₹613.35, down ₹39.30 or 6.02% from its previous close of ₹652.65.
- Opening Price: ₹645.00
- Day’s High: ₹645.00
- Day’s Low: ₹607.60
- Market Cap: ₹1.37 lakh crore
- P/E Ratio: 9.83
- Dividend Yield: 0.57%
- 52-Week High: ₹772.65
- 52-Week Low: ₹557.60
The stock opened with a significant gap-down and extended losses throughout the morning session before showing minor signs of stabilisation near the ₹613 mark.
What’s Driving Hindalco’s Stock Decline?
The sharp fall in Hindalco’s share price is attributed to a combination of global macroeconomic pressures and sector-specific concerns.
1. Trump’s Tariff Shock
Global equities were rattled after U.S. President Donald Trump announced sweeping reciprocal tariffs on a range of imports. The tariffs, viewed as more aggressive than expected, rekindled fears of a global trade war, causing investors to flee riskier assets like commodities and metals.
2. Weak Sentiment in Metal Stocks
The Nifty Metal index plunged over 3% in early trade, with Hindalco, JSW Steel, and Vedanta leading the declines. Metals are cyclical in nature, and any threat to global trade flows or industrial demand tends to hammer stocks in this segment.
3. Aluminium Market Uncertainty
Analysts pointed out that aluminium prices on the LME (London Metal Exchange) have also softened this week amid worries over slowing Chinese demand and surging global inventories, further pressuring Hindalco’s outlook.
4. Profit Booking at Higher Levels
Hindalco has been a strong performer in the last two quarters, benefiting from robust exports and cost control. However, with the stock trading near the upper end of its historical valuation band, investors likely opted for profit booking amid global volatility.
Expert Take
Richa Sharma, Senior Analyst at ShareIndia, said:
“Hindalco’s fundamentals remain strong, but today’s fall is largely sentiment-driven. The global trade tariff fears have particularly hit metal counters hard. Investors should wait for more clarity before re-entering.”
Amit Gupta, Fund Manager at Globe AMC, noted:
“With the US targeting multiple trade partners simultaneously, Indian exporters in the commodity space might face indirect consequences through pricing pressure. Hindalco’s dip reflects this anxiety.”
Broader Market Impact
The broader market was under heavy pressure too, with the Nifty 50 plunging below the 23,000 mark. Sectors like IT, metal, and auto were among the worst hit. Hindalco’s fall was in line with the 6.22% decline in ONGC and 3.16% dip in Reliance Industries, reflecting a pan-sectoral risk-off sentiment.
Technical Outlook
From a technical standpoint:
- Hindalco has breached the near-term support of ₹620.
- Next crucial support is placed near ₹600.
- RSI is trending below 40, indicating bearish momentum.
- Any recovery may face resistance at ₹630–₹645 zone.
Short-term traders are advised to remain cautious, while long-term investors may consider accumulation near ₹600 if global sentiment stabilizes.
Hindalco’s 6% drop on April 4 reflects a broader panic in the metals space, sparked by fears of a global trade war. While the fundamentals remain intact for the long run, near-term volatility could persist as global markets digest the tariff shocks and await clarity on trade policy direction.
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